Garnaut says move to Emissions Trading Scheme

Former Labor government climate change adviser Professor Ross Garnaut has called on the conservative Liberal-National government to keep elements of the carbon pricing structure when the carbon price is repealed.

However, the Environment Minister Greg Hunt speaking at a conference in the Victorian state capital, Melbourne, has immediately dismissed that.

AAP Newsagency reports Mr Hunt said the government would remove the carbon price “lock, stock and barrel” with no room for change.

The Liberal-National government planned to introduce carbon price repeal bills into the Senate next week and is banking on the support of crossbench senators to overcome Labor and Australian Greens Party opposition.

Professor Garnaut designed the Emissions Trading Scheme (ETS) for the Labor government of former Prime Minister Kevin Rudd.

AAP reports he told a panel discussion that carbon pricing had led to a steady reduction of carbon dioxide (CO2) emissions and had not adversely affected the economy or the value of the companies it impacted.

“Keep the infrastructure of the ETS, move straight to an ETS with a flexible price,” he said.

This was not a major step for any political party and would put Australia in a better position if a global emissions trading scheme begins, Professor Garnaut added.

His suggestions echo the position taken to the last election by the opposition Labor Party and are its current view in opposing the government’s repeal legislation

Prof Garnaut said his plan would avoid a difficult situation where Australia would be left without a carbon price with the Palmer United Party refusing to support direct action on climate change until major emitters make clear how they would limit emissions.

When asked if the infrastructure could be retained, Mr Hunt said the bills to repeal the carbon price go before the Senate next week “and it is an abolition”.

“I respect Ross’ view but the tax goes, and it goes lock, stock and barrel,” he said.